Cutting Master Community Charges by 65% at Concept Stage

Cutting Master Community Charges by 65% at Concept Stage

GJC reduced the projected Master Community Charge for a large mixed-use development in Jeddah by around 65%, from 170 SAR/sqm to 60 SAR/sqm. Modelling this at concept stage protected plot sale viability and avoided locking in a significant long-term liability.

GJC reduced the projected Master Community Charge for a large mixed-use development in Jeddah by around 65%, from 170 SAR/sqm to 60 SAR/sqm. Modelling this at concept stage protected plot sale viability and avoided locking in a significant long-term liability.

WRITTEN BY

Robert Reyes

Senior Cost Modeller

SERVICES USED

Cost Modelling

Community Structure

Apportionment

The challenge

A large-scale mixed-use development in Jeddah spanning multiple districts, development plots, and shared community assets required GJC to establish the Master Community Charge at concept stage. Under the initial structure, the assets and services assigned to the Master Community produced a projected charge of approximately 170 SAR/sqm, a liability that would be borne by every plot owner across the development, for the life of the asset.


Our intervention

GJC built a cost model to establish the full operating cost base and Master Community Charge structure. This involved:

  • Reviewing every proposed asset and service against the appropriate community level

  • Developing the apportionment methodology for allocating costs across development plots

  • Mapping the main cost drivers and each component's contribution to the overall charge

With that visibility, we stress-tested alternative scenarios, including community structure, asset ownership and responsibility, phasing, and apportionment approach, to find the combination that minimised long-term liability without compromising the development's amenity offer.

The recommended strategy brought the projected Master Community Charge down from 170 SAR/sqm to 60 SAR/sqm, a reduction of around 65%.


Why timing mattered

This work was completed at concept stage, before the development moved into detailed design. That meant the client could still act on the findings, adjusting design, ownership structure, and development strategy, while those decisions were still open.

Master Community Charges are notoriously difficult to unwind once locked in at masterplan level; by the time a scheme reaches detailed design, the cost structure is effectively fixed for decades. At 170 SAR/sqm, the charge risked pricing plots beyond what owners would accept, a viability issue that could have undermined the client's ability to sell plots across the development, not just an operational cost line.

By addressing this at concept stage, GJC mitigated a significant long-term liability and protected the commercial viability of the sales strategy before key design decisions were locked in.